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Chevron Builds on CCS Portfolio With Greenhouse Gas Assessment Permit Offshore Australia

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Chevron (NYSE: CVX), through its subsidiary Chevron Australia New Ventures, has been awarded a greenhouse gas (GHG) assessment permit offshore Western Australia. The G-18-AP permit covers 8,467 km² and water depths of 50-1100m. This will be part of a CCS hub to store emissions, including from Chevron's LNG assets. Chevron holds a 70% interest, while Woodside Energy holds 30%. Chevron plans to farm down 5% equity to GS Caltex, conditional on approvals. This permit adds to Chevron's CCUS portfolio, including the Gorgon CCS project, which has stored 10 million tonnes of CO2-equivalent. According to the IEA, global net zero is unattainable without CCUS.

Chevron (NYSE: CVX), attraverso la sua controllata Chevron Australia New Ventures, ha ricevuto un permesso per la valutazione dei gas serra (GHG) al largo dell'Australia Occidentale. Il permesso G-18-AP copre 8.467 km² e profondità d'acqua di 50-1100m. Questo farà parte di un hub di CCS per immagazzinare le emissioni, inclusa quelle degli asset LNG di Chevron. Chevron detiene una partecipazione del 70%, mentre Woodside Energy ne detiene il 30%. Chevron prevede di cedere una partecipazione del 5% a GS Caltex, subordinatamente alle approvazioni. Questo permesso si aggiunge al portafoglio CCUS di Chevron, compreso il progetto Gorgon CCS, che ha immagazzinato 10 milioni di tonnellate di CO2 equivalente. Secondo l'IEA, il net zero globale è irraggiungibile senza CCUS.

Chevron (NYSE: CVX), a través de su filial Chevron Australia New Ventures, ha recibido un permiso para la evaluación de gases de efecto invernadero (GHG) en alta mar, frente a la costa de Australia Occidental. El permiso G-18-AP cubre 8.467 km² y profundidades de agua de 50-1100m. Esto será parte de un centro de CCS para almacenar emisiones, incluidas las de los activos de LNG de Chevron. Chevron tiene un interés del 70%, mientras que Woodside Energy posee el 30%. Chevron planea ceder un 5% de participación a GS Caltex, sujeto a aprobaciones. Este permiso se suma al portafolio de CCUS de Chevron, que incluye el proyecto Gorgon CCS, que ha almacenado 10 millones de toneladas de CO2 equivalente. Según la IEA, el neto cero global es inalcanzable sin CCUS.

Chevron (NYSE: CVX)는 그 자회사 Chevron Australia New Ventures를 통해 서호주 해역에서 온실가스(GHG) 평가 허가를 받았습니다. G-18-AP 허가는 8,467 km²의 면적과 50-1100m의 수심을 포함합니다. 이는 Chevron의 LNG 자산에서 발생하는 배출물을 저장하기 위한 CCS 허브의 일부가 될 것입니다. Chevron은 70%의 지분을 보유하고 있으며, Woodside Energy는 30%를 보유하고 있습니다. Chevron은 GS Caltex에 5%의 지분을 양도할 계획이며, 이는 승인을 조건으로 합니다. 이 허가는 Chevron의 CCUS 포트폴리오에 추가되며, 이에는 1천만 톤의 CO2에 해당하는 배출량을 저장한 Gorgon CCS 프로젝트가 포함됩니다. IEA에 따르면, CCUS 없이는 전 세계적인 탄소 중립은 불가능합니다.

Chevron (NYSE: CVX), par l'intermédiaire de sa filiale Chevron Australia New Ventures, a obtenu un permis d'évaluation des gaz à effet de serre (GHG) au large de l'Australie-Occidentale. Le permis G-18-AP couvre 8 467 km² et des profondeurs d'eau de 50 à 1100 m. Cela fera partie d'un hub CCS pour stocker les émissions, y compris celles des actifs de GNL de Chevron. Chevron détient un intérêt de 70 %, tandis que Woodside Energy en détient 30 %. Chevron prévoit de céder 5 % des parts à GS Caltex, sous réserve d'approbations. Ce permis s'ajoute au portefeuille CCUS de Chevron, y compris le projet Gorgon CCS, qui a stocké 10 millions de tonnes de CO2 équivalent. Selon l'IEA, atteindre un net zéro mondial est impossible sans CCUS.

Chevron (NYSE: CVX) hat über ihre Tochtergesellschaft Chevron Australia New Ventures eine Genehmigung zur Bewertung von Treibhausgasen (GHG) vor der Westküste Australiens erhalten. Die Genehmigung G-18-AP umfasst 8.467 km² und Wassertiefen von 50-1100m. Dies wird Teil eines CCS-Hubs zur Speicherung von Emissionen sein, einschließlich der von Chevrons LNG-Assets. Chevron hält eine Beteiligung von 70%, während Woodside Energy 30% hält. Chevron plant, 5% der Beteiligung an GS Caltex abzugeben, vorbehaltlich der Genehmigungen. Diese Genehmigung erweitert das CCUS-Portfolio von Chevron, einschließlich des Gorgon CCS-Projekts, das 10 Millionen Tonnen CO2-Äquivalent gespeichert hat. Laut der IEA ist globales Netto-Null ohne CCUS unerreichbar.

Positive
  • Awarded GHG assessment permit offshore Western Australia covering 8,467 km².
  • 70% interest in permit with Woodside Energy holding 30%.
  • Expands Chevron's CCS portfolio, including the Gorgon CCS project.
  • Gorgon CCS project captured and stored 10 million tonnes of CO2-equivalent.
Negative
  • Equity farm-down to GS Caltex is conditional on regulatory approvals.

Insights

Chevron's acquisition of the GHG assessment permit in Western Australia marks a significant step in expanding its carbon capture and storage (CCS) portfolio. This move aligns with the global push towards net-zero emissions and positions Chevron as a key player in the emerging CCS market.

The permit's strategic location offshore from Onslow provides Chevron with the potential to create a hub for storing third-party emissions, including those from its own LNG assets. This could significantly enhance the company's ability to reduce its carbon footprint and offer emissions reduction solutions to other industries in the region.

The joint venture with Woodside Energy and the potential involvement of GS Caltex demonstrates a collaborative approach to tackling climate change, which could lead to more efficient and cost-effective CCS implementations. However, the success of this project will depend on technological advancements, regulatory support and market demand for carbon storage services.

Chevron's expansion of its CCS portfolio through this new permit is a strategic move that could yield significant long-term benefits. The company is positioning itself to capitalize on the growing demand for emissions reduction solutions, potentially creating a new revenue stream while addressing climate concerns.

The scale of the permit area (8,467 km2) and its water depth range (50-1100m) suggest substantial storage capacity, which could make it an attractive option for industries seeking to offset their emissions. Chevron's experience with the Gorgon CCS project, which has already stored 10 million tonnes of CO2-equivalent, provides valuable expertise for this new venture.

However, investors should note that CCS projects often require significant upfront investment and may face technological and regulatory challenges. The project's profitability will depend on factors such as carbon pricing mechanisms and the pace of global decarbonization efforts.

HOUSTON--(BUSINESS WIRE)-- Chevron Corporation (NYSE: CVX), through its subsidiary Chevron Australia New Ventures Pty Ltd (Chevron), has been awarded a greenhouse gas (GHG) assessment permit offshore Western Australia. The permit award provides further opportunity for Chevron to deliver on its strategy of safely delivering lower carbon energy to a growing world.

The G-18-AP permit is offshore from Onslow, Western Australia and covers an area of approximately 8,467 km2 with water depths of 50-1100m. The permit area will be evaluated as part of a hub for storing third party emissions, including those from Chevron’s operated LNG assets.

The permit involves a joint venture with Chevron as operator, and Woodside Energy Ltd. Chevron will hold a 70% participating interest in the permit, and Woodside will hold a 30% participating interest. Chevron has agreed to farm down five percent of its equity in the permit to GS Caltex (GSC) of Korea. GSC’s entry into the permit is conditional on regulatory approvals and other matters.

“Chevron, along with our joint venture participants, have a unique set of assets, capabilities and customer relationships to support the further assessment, development and deployment of carbon capture and storage (CCS) in Australia,” said Chris Powers, vice president of CCUS & Emerging for Chevron New Energies.

“Together with the Chevron-operated Gorgon CCS project, one of the world’s largest integrated facilities, coupled with our existing GHG assessment permits, this new award has potential to expand Chevron’s portfolio of CCS assets in Australia,” he said.

Mark Hatfield, managing director, Chevron Australia said: “These opportunities have the potential to help us lower the carbon intensity of our own operations as well as provide opportunities to help our customers reduce or offset emissions from their activities.”

This block award adds to Chevron’s non-operated interests in G-9-AP, G-10-AP and G-11-AP as well as operating Gorgon CCS which has now captured and stored 10 million tonnes of CO2-equivalent.

According to the International Energy Agency, reaching global net zero will be virtually impossible without CCUS.1

1 Energy Technology Perspectives 2020, Special Report on Carbon Capture Utilisation and Storage p13
“Reaching net zero will be virtually impossible without CCUS”

About Chevron

Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable, and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our oil and gas business, lower the carbon intensity of our operations and grow lower carbon businesses in renewable fuels, carbon capture and offsets, hydrogen and other emerging technologies. More information about Chevron is available at www.chevron.com.

Notice

As used in this news release, the term “Chevron” and such terms as “the company,” “the corporation,” “our,” “we,” “us” and “its” may refer to Chevron Corporation, one or more of its consolidated subsidiaries, or to all of them taken as a whole. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.

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CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains forward-looking statements relating to Chevron’s operations and lower carbon strategy that are based on management’s current expectations, estimates, and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “advances,” “commits,” “drives,” “aims,” “forecasts,” “projects,” “believes,” “approaches,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “progress,” “may,” “can,” “could,” “should,” “will,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on track,” “goals,” “objectives,” “strategies,” “opportunities,” “poised,” “potential,” “ambitions,” “aspires” and similar expressions, and variations or negatives of these words, are intended to identify such forward-looking statements, but not all forward-looking statements include such words. These statements are not guarantees of future performance and are subject to numerous risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices and demand for the company’s products, and production curtailments due to market conditions; crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; technological advancements; changes to government policies in the countries in which the company operates; public health crises, such as pandemics and epidemics, and any related government policies and actions; disruptions in the company’s global supply chain, including supply chain constraints and escalation of the cost of goods and services; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic, market and political conditions, including the military conflict between Russia and Ukraine, the conflict in Israel and the global response to these hostilities; changing refining, marketing and chemicals margins; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; development of large carbon capture and offset markets; the results of operations and financial condition of the company’s suppliers, vendors, partners and equity affiliates; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the company’s control; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes undertaken or required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures related to greenhouse gas emissions and climate change; the potential liability resulting from pending or future litigation; the risk that regulatory approvals with respect to the Hess Corporation (Hess) transaction are not obtained or are obtained subject to conditions that are not anticipated by the company and Hess; potential delays in consummating the Hess transaction, including as a result of regulatory proceedings or the ongoing arbitration proceedings regarding preemptive rights in the Stabroek Block joint operating agreement; risks that such ongoing arbitration is not satisfactorily resolved and the potential transaction fails to be consummated; uncertainties as to whether the potential transaction, if consummated, will achieve its anticipated economic benefits, including as a result of regulatory proceedings and risks associated with third party contracts containing material consent, anti-assignment, transfer or other provisions that may be related to the potential transaction that are not waived or otherwise satisfactorily resolved; the company’s ability to integrate Hess’ operations in a successful manner and in the expected time period; the possibility that any of the anticipated benefits and projected synergies of the potential transaction will not be realized or will not be realized within the expected time period; the company’s future acquisitions or dispositions of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government mandated sales, divestitures, recapitalizations, taxes and tax audits, tariffs, sanctions, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; higher inflation and related impacts; material reductions in corporate liquidity and access to debt markets; changes to the company’s capital allocation strategies; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company’s ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 20 through 26 of the company’s 2023 Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission. Other unpredictable or unknown factors not discussed in this news release could also have material adverse effects on forward-looking statements.

Chevron

Kelly Russell

KellyRussell@chevron.com

(936) 333-4077

Source: Chevron Corporation

FAQ

What is the recent permit awarded to Chevron related to CCS?

Chevron has been awarded a greenhouse gas assessment permit offshore Western Australia for CCS activities.

How much area does the new CCS permit cover?

The new CCS permit covers an area of 8,467 km² offshore Western Australia.

Who are the partners in Chevron's new CCS permit?

Chevron holds a 70% interest in the permit while Woodside Energy holds 30%, with a planned farm-down of 5% equity to GS Caltex.

What is the significance of the Gorgon CCS project for Chevron?

The Gorgon CCS project is one of the world's largest integrated facilities and has captured and stored 10 million tonnes of CO2-equivalent.

Does the new permit contribute to Chevron's lower carbon energy strategy?

Yes, the new permit helps Chevron in delivering lower carbon energy and supports its CCS expansion in Australia.

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